1Research Scholar (ANU), Asst. Professor, Dept. of Business Administration, St. Ann's College of Engineering & Technology, Chirala, A.P. India. E-Mail: krishnachevuri@gmail.com
2Head of The Department Dept. of Commerce & Bus. ADMN., Acharya Nagajuna University Ongole Campus, Ongole, Prakasam (DT.), A.P, India. E-Mail: drkrishnabanana@gmail.com
Online published on 23 January, 2019.
Prudential norms in respect of the financial sector were envisaged in the early 1990s by the committee on financial system set up in 1991 and various norms were introduced for its smooth functioning. These norms are related to capital adequacy, income recognition, and provisioning for bad debts, which were expected to improve the productivity, profitability and efficiency of the commercial banks. The assets of the banks are divided into performing and Non Performing Assets (NPA). Non Performing Assets are the sum of sub standard assets, doubtful assets and loss assets. The amount of NPA's is increasing year by year in the Indian Scheduled Commercial Banks (SCB). The aggregate gross NPAs of SCBs increased primarily as a result of transparent recognition of stressed assets as NPAs, from Rs 3, 23, 464 crore, as on March 31, 2015, to Rs 10, 35, 528 crore, as on March 31, 2018. The objective of the paper is to know the opinion of the bank executives over the growth of the non performing assets. The opinions of the executives are collected from the selected banks in Prakasam district. The study revealed that the primary reason for the growth of the NPA's is the willful default of the customer.
Financial system, Non Performing Assets, Banking norms and Commercial banks
